NZD/USD is on the verge of confirming a bullish chart pattern
NZD/USD cheers softer-than-expected fall in New Zealand (NZ) Q3 GDP as bulls knock on the door around 0.6780 during Thursday. In doing so, the kiwi pair is about to confirm a bullish chart pattern named falling wedge, backed by upbeat MACD signals and RSI line. The 100-SMA level of 0.6800 will act as an additional upside filter, other than the immediate 0.6790 hurdles, before welcoming the NZD/USD buyers. Following that, a run-up towards the 200-SMA level of 0.6933 can’t be ruled out.
It’s worth noting that a month-old descending trend line, around 0.6860, will precede the late November swing high close to 0.6960 to act as additional upside filters. Meanwhile, pullback moves will be tested by the lower line of the stated wedge formation, near 0.6725, a break of which will recall the 0.6700 thresholds on the chart, which also comprises a descending support line from March. In a case where NZD/USD bears keep the reins past 0.6700, a downward trajectory towards late 2020 bottom near 0.6590 can’t be ruled out. Trend: Further upside expected